For Immediate Release
Chicago, IL – April 9, 2018 - Stocks in this week’s article Abaxis, Inc. (ABAX - Free Report) , Haynes International, Inc. (HAYN - Free Report) , MakeMyTrip Limited (MMYT - Free Report) and Vectrus, Inc. (VEC - Free Report) .
4 Top Stocks to Buy with Superb Earnings Acceleration
At the onset of the Q1 earnings season, investors should look for stocks that are ready to make a big move. Consistent earnings growth enthralls almost everyone, right from the top brass to research analysts. Upbeat earnings results are more often than not followed by an uptick in the share price.
Earnings acceleration, however, works even better when it comes to lifting the stock price. Studies have shown that a majority of successful stocks had seen acceleration in earnings before an uptick in the stock price.
So, what is earnings acceleration? It is the incremental growth in a company’s earnings per share (EPS). In other words, if the rate of a company’s quarter-over-quarter earnings growth increases within a stipulated frame of time, it can be called earnings acceleration.
In case of earnings growth, you pay for something that is already reflected in the stock price. But, earnings acceleration helps spot stocks that haven’t caught the attention of investors yet, which once secured will invariably lead to a rally in the share price. This is because earnings acceleration considers both direction and magnitude of growth rates.
Increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period of time. On the other hand, a sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may at times drag prices down.
Hence, earnings acceleration should be viewed as a key metric for share price outperformance.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/298305/4-top-stocks-to-buy-with-superb-earnings-acceleration
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